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Arizona VA Disability Benefits & Resources

By Kory Kehl Last updated: Editorial policy

The Arizona Department of Veterans’ Services (ADVS) runs four state veteran homes, in Flagstaff, Phoenix, Tucson and Yuma, and a statewide network of accredited Veteran Benefits Counselors. For tax year 2026, Arizona fully exempts the primary residence of qualifying veterans rated 100% service-connected, subject to household income rules. Signed HB 4168 adds TDIU and broader survivor provisions for tax year 2027 and removes veteran and qualifying survivor income limits then.

Checked against official state sources on September 27, 2026. Corrections since then are listed at the bottom of this page.

Key benefits at a glance

BenefitWho qualifiesAmount / limitOfficial source
Full property tax exemptionTY2026: qualifying 100% service-connected veterans, subject to income rules; TY2027: TDIU and broader survivor eligibility addedEntire primary residence2026: ADOR FAQ; 2027: A.R.S. § 42-11111 (shows the 2027 text)
Partial property tax exemptionService-connected below 100%, or nonservice-connected; income limits apply in TY2026 and are removed for veterans in TY2027$4,873 before proration in 2026, times the ratingADOR
Military retirement exclusionUniformed services retireesFully exempt since tax year 2021ADOR
Vehicle license tax and registration exemption100% disabled and paid at that rate; surviving spouseOne vehicleADOT MVD
Hunting and fishing licenseOne-year residents with a permanent 100% service-connected ratingComplimentary license authorized by lawA.R.S. § 17-333
Immediate in-state tuitionVeterans (90+ days active duty) and eligible family using Ch. 30, 31, 33 or 35In-state rates at public universities and community collegesADVS
Tuition waiver scholarshipChildren and spouses of Arizona service members killed in the line of dutyTuition at Arizona universities and community collegesA.R.S. § 15-1808
State hiring preferenceVeterans with 6+ months active duty; veterans who also have a disability5 points; 10 pointsA.R.S. § 38-492

Property tax exemption

The rules for tax year 2026 differ from the changes in signed HB 4168, chapter 140, sections 11 and 34(B), which apply to tax years beginning January 1, 2027.

Tax year 2026:

  • 100% service-connected: a qualifying veteran’s primary residence is fully exempt, subject to household income requirements. A residence owned jointly by the veteran and spouse is treated as owned solely by the veteran. TDIU alone is not the full-exemption route for this tax year.
  • Service-connected below 100%, or a nonservice-connected rating: the partial exemption is an annually adjusted assessed-value amount multiplied by the VA disability percentage. The ADOR annual abstract for tax year 2026 lists $4,873 before proration. Any unused amount can be applied to vehicle license tax.
  • Income: ADOR’s 2026 limits are $39,865, or $47,826 if a child under 18 or a child with a disability lives with you. Income includes you, your spouse, and children living with you. For 2026, the statute starts with adjusted gross income, which leaves out VA disability compensation, and adds government retirement pay and other pensions; Social Security and VA pension don’t count. Maricopa County’s application says military pensions are not counted, so ask your county assessor how it treats military retired pay. The assessed-value cap does not apply to veteran exemptions.
  • Surviving spouses: under the 2026 rule, an unremarried spouse may continue the full exemption on the same primary residence if the veteran had received it. ADOR explains that a spouse whose veteran received the exemption and died in 2026 can first claim that continuation in January 2027; it is not the new partial-survivor route.

Beginning with tax year 2027: HB 4168 adds TDIU to the full primary-residence exemption and removes income limits for veteran and qualifying veteran-survivor exemptions. It extends the full surviving-spouse exemption to the spouse of a veteran who was eligible, even without having received the exemption, adds a partial surviving-spouse route based on the veteran’s rating, and requires anyone with the exemption who moves to file the assessor’s exemption transfer form within 60 days of the new home becoming their primary residence. These expansions do not change the operative 2026 income rules. See the legislature’s signed-bill summary.

How to apply: file an affidavit with your county assessor during the annual window, from the first Monday in January through March 1, with the required VA rating evidence. For the TDIU route beginning in 2027, include the TDIU award. Ask the assessor about the requirements for your tax year and any move.

State income tax

  • Military retirement: retired or retainer pay of the uniformed services has been fully exempt since tax year 2021 (A.R.S. § 43-1022, paragraph 26). ADOR also lists active duty pay and National Guard and reserve pay as excluded.
  • VA disability compensation: it is excluded from federal gross income, and Arizona’s income tax starts from federal adjusted gross income, so it isn’t taxed by the state.

Vehicle registration and license plates

Under A.R.S. § 28-5802, ADOT’s Motor Vehicle Division collects no vehicle license tax or registration fee from:

  • a veteran certified by VA as 100% disabled and paid on that basis, for one personally owned vehicle. The exemption passes to a surviving spouse until remarriage or death. Bring a VA eligibility letter or a DoD ID card showing 100% Disabled American Veteran status.
  • a veteran whose vehicle was bought with VA financial aid
  • an honorably discharged Purple Heart recipient, for one vehicle

If you have a veteran property tax exemption from your county, bring the assessor’s certified statement to MVD so any unused exemption can reduce your vehicle license tax.

ADVS says Arizona’s Veteran plates cost $25 plus a $25 annual renewal, with $17 of each $25 going to the Arizona Veterans’ Donations Fund. A version with the disability symbol is available at no extra charge to applicants who submit ADOT’s disability form. Veterans can also add a veteran designation to an Arizona driver license or ID by showing a DD-214 at MVD.

Hunting and fishing licenses

A.R.S. § 17-333 authorizes the Arizona Game and Fish Commission to issue:

  • a complimentary license to a veteran who has lived in Arizona for at least one year and receives VA compensation for a permanent service-connected disability rated 100%
  • a license at a reduced fee of up to 25% off to a one-year resident veteran who receives compensation for any service-connected disability

Ask the Arizona Game and Fish Department which license types and prices currently apply and what proof it needs.

Education benefits

  • Immediate in-state tuition: under A.R.S. § 15-1802(L), a veteran discharged after 90 or more days of active duty who enrolls at an Arizona public university or community college while using Chapter 30, 31, 33 or 35 benefits is classified as in-state right away. You must show objective evidence that you intend to live in Arizona, such as registering to vote, getting an Arizona driver license or registering a vehicle. ADVS says eligible spouses and dependents using those benefits qualify too.
  • Tuition waiver scholarship (A.R.S. § 15-1808): the child or spouse of an armed forces member who lived or was stationed in Arizona and was killed in the line of duty gets a tuition waiver at Arizona universities and community colleges. The same waiver covers the child or spouse of an Arizona veteran who suffered a post-traumatic stress injury in the line of duty and died by suicide. Children must be 30 or younger and spouses must not have remarried. ADVS verifies eligibility for military families.

State veterans homes

ADVS operates four Medicare-certified skilled nursing homes for honorably separated veterans and their spouses who need skilled nursing care:

  • Arizona State Veteran Home - Flagstaff: Flagstaff (opened fall 2024)
  • Arizona State Veteran Home - Phoenix: Phoenix
  • Arizona State Veteran Home - Tucson: Tucson
  • Arizona State Veteran Home - Yuma: Yuma

Admission forms are on the ADVS veteran homes page, or call the home’s admissions coordinator.

Employment preference

A.R.S. § 38-492 applies to merit-system jobs with the state and with cities, counties and other political subdivisions:

  • 5 points for a veteran separated under honorable conditions after more than six months of active duty, added only to a passing score
  • 10 points for a veteran who also qualifies for the 5-point disability preference
  • 5 points for the spouse or surviving spouse of a veteran who died of a service-connected disability, among others listed in the statute

How to apply for Arizona veteran benefits

  1. Download your VA benefit summary letter from VA.gov. If you’re paid at 100% through TDIU, keep that award letter as well (for tax year 2027 and later).
  2. For the property tax exemption, file the affidavit with your county assessor between the first Monday in January and March 1.
  3. For the vehicle license tax exemption, bring the VA letter, or the assessor’s certified statement, to MVD.
  4. For in-state tuition, give the school’s veterans office your VA Certificate of Eligibility and proof that you intend to live in Arizona.
  5. For free help with federal and state benefits, schedule an appointment with an ADVS Veteran Benefits Counselor at 602-535-1215. Counselors work statewide, in person, by phone or by video, and in each state veteran home. The ADVS main office is at 1688 W. Adams Street, Phoenix, AZ 85007, 602-255-3373.

VA offices and medical centers in Arizona

Phoenix VA Regional Benefit Office: 3333 North Central Avenue, Phoenix, AZ 85012.

VA medical centers in Arizona:

  • Carl T. Hayden Veterans’ Administration Medical Center: Phoenix
  • Tucson VA Medical Center: Tucson
  • Bob Stump Department of Veterans Affairs Medical Center: Prescott

The Northern Arizona VA Health Care System’s clinics include sites in Chinle, Kayenta and Tuba City in the northeastern part of the state. Find other outpatient clinics with the VA facility locator.

Filing a federal VA disability claim from Arizona

The VA disability claim process is the same in every state. See how to file, check your claim status and the 2026 compensation rates. ADVS Veteran Benefits Counselors, accredited by VA, prepare claims and appeals at no charge. If you’re in crisis, call the Veterans Crisis Line at 988 and press 1.

Correction — October 21, 2026: Corrected the property tax section. For tax year 2026, the full home exemption requires a 100% service-connected rating, and household income limits apply. TDIU eligibility, the end of income limits for veterans, and broader surviving-spouse rules start in tax year 2027. Added the 2026 exemption amount and income limits.

Frequently Asked Questions

Do 100% disabled veterans pay property tax in Arizona?

For tax year 2026, qualifying veterans with a 100% service-connected rating can receive a full primary-residence exemption, subject to household income requirements. HB 4168 adds TDIU eligibility, removes veteran and qualifying survivor income limits, and expands surviving-spouse and transfer provisions beginning with tax year 2027. New applications go to your county assessor between the first Monday in January and March 1.

How does the Arizona exemption work if I'm rated less than 100%?

Veterans with a service-connected rating below 100%, or a nonservice-connected disability rating, get a partial exemption: an annually adjusted dollar amount of assessed value multiplied by the disability percentage ($4,873 before proration for 2026). The assessed-value cap no longer applies to veterans. Household income limits apply for tax year 2026; HB 4168 removes them for veteran exemptions beginning with tax year 2027. Confirm your eligibility with the county assessor.

Does Arizona tax military retirement or VA disability pay?

Arizona has fully exempted retired or retainer pay of the uniformed services since tax year 2021 (A.R.S. § 43-1022). VA disability compensation is excluded from federal gross income, and Arizona's income tax starts from federal adjusted gross income, so it is not taxed by the state either.

Do disabled veterans pay vehicle registration in Arizona?

A veteran the VA certifies as 100% disabled and paid on that basis owes no vehicle license tax or registration fee on one personally owned vehicle (A.R.S. § 28-5802). The exemption continues for a surviving spouse until remarriage or death. Veterans whose vehicle was bought with VA financial aid, and honorably discharged Purple Heart recipients, also qualify for one vehicle.

Can veterans get in-state tuition right away in Arizona?

Yes, if they are using VA education benefits. Under A.R.S. § 15-1802(L), a veteran discharged after 90 or more days of active duty who enrolls at an Arizona public university or community college while using Chapter 30, 31, 33 or 35 benefits gets immediate in-state tuition after showing intent to live in Arizona, such as registering to vote or getting an Arizona driver license. The Arizona Department of Veterans' Services says eligible spouses and dependents using those benefits qualify too.

Sources

The rating criteria, diagnostic codes, and dollar figures on this page are cited to the references below. See our editorial policy for how we choose and verify sources.

  1. A.R.S. § 42-11111, Exemption for property; veterans with a disability — Arizona State Legislature
  2. Property Tax FAQs (veterans with a disability) — Arizona Department of Revenue
  3. Annual Abstract of Published Rates and Amounts, Tax Year 2026 — Arizona Department of Revenue
  4. Laws 2026, Chapter 140 (HB 4168) — Arizona State Legislature
  5. Military Tax Filing — Arizona Department of Revenue
  6. A.R.S. § 43-1022, Subtractions from Arizona gross income — Arizona State Legislature
  7. Vehicle License Tax Exemptions — Arizona Department of Transportation, Motor Vehicle Division
  8. A.R.S. § 28-5802, Vehicle license tax exemption; veterans — Arizona State Legislature
  9. Veteran License Plates — Arizona Department of Veterans' Services
  10. A.R.S. § 17-333, License classifications; reduced fee and complimentary licenses — Arizona State Legislature
  11. In-State Tuition — Arizona Department of Veterans' Services
  12. A.R.S. § 15-1802, In-state student status — Arizona State Legislature
  13. A.R.S. § 15-1808, Tuition waiver scholarships — Arizona State Legislature
  14. Arizona State Veteran Homes — Arizona Department of Veterans' Services
  15. Veteran Benefits Counselors (VBCs) — Arizona Department of Veterans' Services
  16. A.R.S. § 38-492, Preferences — Arizona State Legislature
  17. Phoenix VA Regional Benefit Office — U.S. Department of Veterans Affairs
  18. VA Phoenix Health Care: Locations — U.S. Department of Veterans Affairs
  19. VA Southern Arizona Health Care: Locations — U.S. Department of Veterans Affairs
  20. VA Northern Arizona Health Care: Locations — U.S. Department of Veterans Affairs

This content is for informational purposes only and does not constitute legal or medical advice. For personalized guidance, consult a VA-accredited VSO, attorney, or claims agent.